AUSTIN, Texas--(BUSINESS WIRE)--Dimensional Fund Advisors, a global leader in systematic multifactor investing, expanded its exchange-traded funds (ETFs) offering with today’s listing of four new international ETFs on the Chicago Board Options Exchange (Cboe). The new ETFs offer broadly diversified exposure to core international equities across market caps and styles as well as component solutions focused on international small cap, international small cap value, and international high profitability1 equities.
“Recent volatility has demonstrated the continued value of broadly diversified portfolios with added flexibility as well as experienced advisors to help keep investors aligned with their financial plans,” said Co-CEO Dave Butler. “The active transparent ETF industry remains relatively nascent, and we believe our approach, which builds on the core principles of indexing by incorporating flexible, daily implementation, will continue to attract investors that believe in investing for the long term.”
The Cboe-listed funds are:
International Core Equity 2 ETF (Cboe: DFIC)
- Net expense ratio2: 0.23%
- Description: The portfolio is designed to purchase a broad and diverse group of non-US companies in developed markets with an emphasis on companies with smaller market capitalization, lower relative price, and higher profitability.
International Small Cap ETF (Cboe: DFIS)
- Net expense ratio2: 0.39%
- Description: The portfolio is designed to purchase small, non‑US companies in developed markets.
International Small Cap Value ETF (Cboe: DISV)
- Net expense ratio2: 0.42%
- Description: The portfolio is designed to purchase small, non‑US companies with low prices in relation to their book values3 in developed markets.
International High Profitability ETF (Cboe: DIHP)
- Net expense ratio2: 0.29%
- Description: The portfolio is designed to purchase large, non‑US companies with high earnings or profits from operations in relation to their book value or assets in developed markets.
The four new funds join a growing lineup of Dimensional ETFs, now totaling 20 funds, that complement the firm’s existing mutual funds and expanded separately managed accounts (SMAs) offerings.
“For decades, Dimensional has implemented our systematic approach in international equity markets through low-cost, broadly diversified strategies. Now we are delivering these time-tested core and component strategies within ETFs,” said Co-CEO and Chief Investment Officer Gerard O’Reilly. “Efficiently managing costs, controlling risks, and managing tax impacts are crucial when investing across thousands of securities in international markets. Our flexible investment approach is focused on delivering those results and adding further value over traditional active investing and passive indexing solutions.”
More information about Dimensional ETFs can be found here: us.dimensional.com/etfs
About Dimensional Fund Advisors
Dimensional is a leading global investment firm that has been translating academic research into practical investment solutions since 1981. Guided by a strong belief in markets, we help investors pursue higher expected returns through a systematic investment process that integrates research insights with advanced portfolio design, management, and trading, while balancing tradeoffs that can impact returns. Dimensional is headquartered in Austin, Texas, and has 13 global offices across North America, Europe, and Asia. As of December 31, 2021, Dimensional manages $679 billion for investors worldwide. For more information, please visit dimensional.com.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (512) 306-7400 or at us.dimensional.com. Dimensional funds are distributed by DFA Securities LLC.
This information is not meant to constitute investment advice, a recommendation of any securities product or investment strategy (including account type), or an offer of any services or products for sale, nor is it intended to provide a sufficient basis on which to make an investment decision. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions.
ETFs trade like stocks, fluctuate in market value, and may trade either at a premium or discount to their net asset value. ETF shares trade at market price and are not individually redeemable with the issuing fund, other than in large share amounts called creation units. ETFs are subject to risks similar to those of stocks, including those regarding short-selling and margin account maintenance. Ordinary broker commissions may apply. Risks include loss of principal and fluctuating value. Diversification does not eliminate the risk of market loss.
Small cap securities are subject to greater volatility than those in other asset categories. Value investing is subject to risk which may cause underperformance compared to other equity investment strategies.
International investing involves special risks such as currency fluctuation and political instability. Investing in emerging markets may accentuate these risks.
The investment objective of each of the four newly listed ETFs is to achieve long-term capital appreciation.
1 Profitability is defined as a company’s operating income before depreciation and amortization minus interest expense scaled by book equity.
2 Dimensional has agreed to waive certain fees and in certain instances, assume certain expenses of the ETFs. Please read the ETF’s prospectus for details and more information.
3 Book value is defined as the value of stockholder's equity, as reported on a company's balance sheet.